Neelachal Ispat Nigam Limited (NINL) had offered 30,000 tonnes of Pig iron to overseas buyers through an export tender on July 23.
Specification: Basic grade (N1) & Si up to 1.24%
The technical bids opened on August 5th at 1530 hrs and price bids on August 6th at 1530 hrs.
Though, two parties made through the technical round, only Prime Carbon GmbH (Switzerland) submitted a price bid at US$ 375.38/MT FoB Paradip Port for 30,000 tonnes (one lot).
This evening, NINL decided to award the tender to Prime Carbon as bids received are in line with NINL's anticipations. Currently, the company is also holding large inventory.
Demand for Pig iron in domestic market has not been encouraging in the past couple of months as Tata Steel is offering Pooled iron at quite low prices i.e. Rs 18,500/MT (Ex works Jamshedpur).
Indian Pig iron prices have fallen sharply in the last fortnight owing to slow off take and downward price trend in the finished steel market.
Also, sliding Rupee at 60 levels against US dollar has been quite favorable for exports.
In contrast to streets expectations, the Switzerland based importer bid high as it was keen to receive the cargo and sell it out in the Far east region.
Shipment of the material will take place in mid-August and is expected to reach the importer within a fortnight.
It was a good deal as NINL received a price bid higher by Rs 500/MT (considering US$ = INR 60) in comparison to its domestic offers of Rs 22,000/MT (after offering discounts on bulk purchases).
The price bid is also higher by $2.36/MT as compared to the one it received in the last export tender, in the first week of July.
NINL is a state owned company and India's largest Pig iron producer & exporter since 2004-05.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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